Fraser & Neave Holdings Bhd Sustainability Report 2020

THE YEAR IN REVIEW At F&N, we continuously invest in product innovation with our consumers’ health and safety in mind. This year, amidst the pandemic, new products launched included three beverages with zero sugar, namely 100PLUS Zero, F&N ICE MOUNTAIN Sparkling and OYOSHI Gold No Sugar Premium Japanese Green Tea. We also launched Sunkist Pure Juice Drink and Carnation Plus SCM 0% fat, 25% reduced sugar. These have contributed to an increase in our portfolio of products certified with the Healthier Choice Logo, from 41 in 2019 to 47 in 2020. To assure environmental sustainability, we are keen advocates of the circular economy and continue to look for ways to reduce the volume of packagingmaterial used while minimising waste. A highlight this year was to introduce F&N ICE MOUNTAIN Drinking Water cartons made from recyclable paper and capped with bio-based caps made from sugarcane. Collaborating with industry peers, we have also become a founding member of a coalition of manufacturers that seeks to promote a more sustainable future through increasing the recycling of post- consumption packaging waste in Malaysia. Last year, we mentioned plans to install a solar photovoltaic (PV) system at our Rojana plant in Thailand. It gives us pride to share that in April 2020, the solar roof system was commissioned. Going a step further, F&NHB is now investing RM30 million into energy conservation initiatives which will include setting up similar systems at our Shah Alam, Pulau Indah and Bentong Joint Message FROM OUR Chairman & CEO plants in Peninsular Malaysia. Once completed in 2021, our total installed renewable energy capacity of 10 MWp, will generate energy equivalent to the electrical consumption of 3,700 typical households in Malaysia. In terms of governance, we continue to enhance our framework of integrity. This year, F&NHB established three new policies to reinforce an ethical corporate culture, namely the F&N Anti- Bribery and Anti-Corruption Policy, a Code of Business for Third Parties, and F&N Supplier Code of Practice. We also reviewed the F&N Code of Business Ethics and Conduct. As a major producer of Halal products in Malaysia, F&NHB is in a position to facilitate the development of the nation’s Halal industry. We are pleased to share that our efforts to uplift the halal eco-system, as well as extend Malaysia’s strong halal leadership to our network were recognised this year. We received the Halal Food and Beverage Excellence Award at the World Halal Excellence Awards 2020 in Malaysia while the Central Islamic Council of Thailand (CICOT) has named F&N Dairies Thailand as Thailand’s Best Halal Company of the Year 2020. We are encouraged by our resilient performance this year which is the result of the hard work and dedication of our people, underpinned by our strong ESG practices to drive economic progress. This has allowed us to continue to offer our shareholders steady dividends. 008 FRASER & NEAVE HOLDINGS BHD